Early every morning, buses and coaches across Ireland rumble to life, preparing to carry more than 80 million passengers annually through cities, towns and countryside. But as these vehicles pull out of depots burning conventional diesel, they represent both Ireland’s transport lifeline and one of its biggest climate challenges.
Company Details
- Coach Tourism and Transport Council (CTTC)
- Year founded: 1973
- Number of members: CTTC members operate upwards of 1,000 coaches and buses and employ close to 1,750 people throughout the country
- Why it is in the news: In advance of the Budget, the CTTC wants to see alternative fuels used as a bridge to full electrification of the bus and coach fleet
With just six years remaining to halve transport emissions by 2030, the sector finds itself caught between immediate operational realities and long-term environmental imperatives. Unlike private car owners who can increasingly choose electric alternatives, commercial operators face a more complex transition – their vehicles cover longer distances, carry heavier loads, and operate in rural areas where charging infrastructure remains sparse.
In light of this, the Coach Tourism and Transport Council (CTTC) has said that Budget 2026 should include financial incentives for cleaner fuels like Hydrotreated Vegetable Oil (HVO) and a nationwide charging network, to help achieve Ireland’s goal of halving transport emissions by 2030.
The industry body says current trials show green alternatives can deliver immediate environmental benefits, but cost barriers and inadequate infrastructure are preventing widespread adoption across fleets that serve both urban and rural communities.
David Conway, chairperson of the CTTC, said the organisation recommends targeted financial support including fuel duty rebates, VAT relief, or direct subsidies to make HVO financially viable for commercial operators.
“Measures such as fuel duty rebates, VAT relief, or direct subsidies would help offset the current price premium compared with conventional diesel, particularly benefiting smaller, family-run businesses,” Conway said.
He said the current price differential between HVO and conventional diesel creates significant challenges for operators, particularly those running smaller, family-owned businesses that lack the financial cushion to absorb higher costs.
“The cost per litre remains a critical barrier – and clear policy guidance on sustainability certification and sourcing is essential to proceed confidently,” Conway said.
The CTTC chief said updating public procurement criteria would recognise renewable fuel use in tender evaluations, creating market incentives for early adopters.
“Operators using HVO in Local Link services, NTA-contracted routes, or school transport could receive scoring advantages, encouraging early adoption,” Conway said, adding that incorporating HVO into fleet carbon accounting tools would allow operators to track and demonstrate emissions reductions, reinforcing the environmental case for the fuel.
Conway also said trials by members demonstrate that HVO is fully compatible with existing diesel fleets, requiring no retrofits or new vehicles, which allows for seamless adoption.
“Operators have also seen significant environmental benefits, including up to 90 per cent reductions in lifecycle greenhouse gas emissions and lower NOx [nitrogen oxide gases] and particulate emissions, proving the fuel’s immediate impact on sustainability.”
However, establishing reliable supply chains remains crucial for widespread adoption: “The success of HVO deployment depends on consistent and reliable access to the fuel,” he said.
Consequently, the council has proposed that the government should facilitate partnerships between fuel suppliers, distributors, and bus and coach operators to establish nationwide availability.
Infrastructure investment key to long-term success
While HVO offers immediate benefits, the CTTC said that it acknowledged that Ireland’s long-term decarbonisation strategy will require substantial infrastructure development to support the eventual transition to fully electric fleets.
Conway said developing strategic refuelling hubs along intercity routes and in rural areas would give operators confidence that HVO is reliably accessible.
“Furthermore, the government should provide clear guidance on sustainability certification, sourcing standards, and handling requirements, which would reduce uncertainty and encourage both operators and suppliers to invest in HVO infrastructure,” Conway said.
The council positions HVO as a transitional technology, while electric vehicle infrastructure develops across the country.
“For long-distance, intercity, and rural operations, current EV technology and charging infrastructure is not yet sufficient,” Conway said.
HVO allows operators to reduce carbon emissions immediately without compromising service reliability
“Meanwhile, HVO allows operators to reduce carbon emissions immediately without compromising service reliability or requiring significant investment in new vehicles or charging facilities.”
The fuel provides a near-term pathway to emissions reduction that ensures all areas of Ireland can benefit from low-carbon transport solutions while the EV network matures, he said:
“By providing immediate emissions reductions, HVO ensures operational continuity, acting as a transitional technology that complements the country’s long-term shift toward zero-emission transport.”
However, for now the single most critical infrastructure investment needed is a reliable, nationwide electric vehicle charging network, according to the CTTC.
“Ireland is lagging well behind other European countries, with the need to expand electric vehicle charging facilities across the country,” he said.
“Without urgent action, commercial bus and coach companies cannot realistically switch to electric fleets at the pace needed, leaving Ireland’s climate targets at risk.”
The CTTC’s vision of a funded and accelerated charging strategy would, he said, give operators the certainty to invest in zero-emission vehicles and make
the sector a key partner in cutting transport emissions: “A comprehensive charging network would allow the
commercial bus sector to become a strategic partner in delivering Ireland’s 50 per cent transport emissions reduction target.”
The CTTC chief also said that expanding funding for zero and low-emission vehicles, combined with investment in charging and refuelling infrastructure, would help operators decarbonise quickly and fairly.
“Including commercial operators in fare schemes and developing proper bus corridors and facilities will make services more affordable, reliable and attractive, encouraging more people out of cars,” he said.
Conway said Budget 2026 represents a crucial opportunity to unlock the sector’s potential.
“Budget 2026 provides an important opportunity to unlock the potential of HVO in Ireland’s bus and coach sector,” he said. “Through financial incentives, supportive procurement policies, and the development of reliable supply chains, HVO can deliver immediate emissions reductions.”
Taking action now would enable operators to implement practical, scalable sustainability measures while continuing the transition toward zero-emission transport, he said: “With targeted investment, the commercial coach sector can stand shoulder to shoulder with Government as a strategic partner in reaching our emission targets.”
LINK
https://www.businesspost.ie/commercial-reports/bus-operators-ask-for-budget-help-to-cut-emissions
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